Further projects within the “100 changes for companies” package will be submitted to the government meeting. It will be a major amendment to the Code of Administrative Procedure, which is to speed up procedures, as well as a creditor package, which will make it easier for entrepreneurs to recover debts. Work is also underway on new regulations concerning shortening the period for storing employee documents from 50 to 10 years and on a new form of conducting business, a simple joint stock company, which will be beneficial for start-ups.
– The Council of Ministers will receive two large, important for entrepreneurs projects, Undersecretary of State in the Ministry of Development. The first one is a large amendment to the Code of Administrative Procedure.
There has not been such a comprehensive amendment of the Code for years. As emphasizes, it has three main objectives. Firstly, it should accelerate administrative proceedings.
– The second goal is to introduce certain mechanisms of a more consensual way of dealing with administrative matters, such as mediation. The third area is to civilize the issue of imposing financial administrative penalties so that they can be measured and adjusted to the actual size of a potential violation of regulations.
The second large project is the so-called creditor package. It is supposed to make it easier for entrepreneurs to recover debts. It will also make it possible to obtain a much wider range of information from the economic information office about a potential contractor. As the Deputy Minister emphasizes, it is to prevent the formation of payment blockages.
The ministry also wants to relieve companies from the burden of storing personnel and payroll documentation of their employees. Today, companies are obliged to store them in paper form for 50 years.
– First of all, it is cost-intensive for the employer, but secondly, it does not provide the employee with full protection nowadays. With today’s changing labour market and the frequency of employer changes, it is not safe for an employee to look for these documents in 50 years with an employer who may have already ceased to operate or transformed,” explains. – Therefore, after 10 years, the obligation to store information needed to calculate pensions will be the sole responsibility of the Social Insurance Institution.
Another improvement is to be the new form of legal personality of the company prepared for start-ups, combining the advantages of a joint stock company and a limited liability company.
– Today we have a problem that a limited liability company does not provide such relations between shareholders that would fully protect the rights of the investor, who is the weaker party to such cooperation. On the other hand, running a joint stock company is expensive. Therefore, we want to develop a legal formula that would combine the advantages of both entities. It is also important that investors do not have to establish such companies abroad.
The first tranche of the “100 changes for companies” package was adopted by the government on 8 November. One of the most important changes concerns tax inspections. The tax office will not be able to re-examine cases that have already been examined. In addition, inspections will be carried out on the basis of a risk analysis, i.e. where the risk of infringement is greatest.
The second area of the amendments adopted concerns legal certainty. Taxpayers will not have to apply for an individual tax interpretation, as acting in accordance with “well-established interpretation practice” will be subject to protection. When determining this practice, taxpayers will be able to use interpretations prepared for other companies.
– The third area concerns limiting the barriers to growth for the smallest companies. If they do not want to fall into some additional administrative or financial obligations, they often limit their activity. Therefore, in the financial law we have raised the limit of simplified accounting or lump-sum settlement, and in the labour law we have reduced the requirements for creating a company social benefits fund. Companies employing up to 50 employees will not be obliged to do so – explains.
Categories: Business
